The New Zealand dollar was falling this morning ahead of a Reserve Bank of New Zealand rate-setting meeting later in the week. No policy changes are expected at the Wednesday RBNZ meeting, but hints at negative rates, or adjustments to the bank’s large-scale asset purchase bond-buying programme could drive volatility in the kiwi.
Last week, the NZD tested a resistance from July 2019 at 0.6797 but retracted, creating a new range of 0.67-0.68 against the greenback. RSI is showing a slightly overbought NZD signalling that more traders are betting on the kiwi but it may also be due to traders closing positions after today’s fall. After all, today is its first decline after it gained for seven out of the last eight consecutive sessions.
